cheryl: so, it is kind of a mixed bag for the blue chips right now. shares of bread, pockets of green you're looking at right now. finishing higher for the seventh day in a row. i am cheryl casone and for liz claman today. it is the last hour of trading and "countdown to the closing bell" right now. stocks are trading at a very near row range. that's mucnot much conviction fe bulls or bears. the all-time high set back in october 2007 just about 14,100 level. that is the number to watch. if jeremy siegel is right, the dow will blow past that level. the s&p 500 just 4% of the all-time high. joining us in just a few minutes with stocks.

and why it is not too late for investors to get it right now in what could be a big rally, and look at this, caterpillar one of the best reporters on the dow. fourth-quarter earnings coming in ahead of street estimates. it expects growth to pick up in the second half of 2013. good news from them. in terms of what is not working, look no further than home builders. all of these names substantially low. that stock had a big 2012, lots of room to fall in a little bit of pressure. what is happening here. pending home sales with the index of contracts signed back in december fell, some more than 4%. economists have been looking for no change, but you have an inventory in the housing market.

high flyers like netflix down almost 4% as you can see. research in motion down almost 7%, not going to try and make a run at the blackberry maker and amazon down as you can see. the market is kind of mixed. the traders standing by at the new york stock exchange, cme group and the nymex. one of the things on the session friday afternoon was the dow getting so close to 42,000, points away. is that some sort of a resistance level we need to be looking at? >> absolutely. look at a professional indicat indicator, and most of the major indices throughout the united states are getting tired and running into resistances. that does not mean it is over.

professor siegel can explain what will happen later on, but for the health of the market, we have to see somewhat of a pullback, a reset, long-term investors a chance to buy the stock. that will be a good thing in the end. cheryl: what about the number that we might be seeing here? >> the 1490 level, 1500 on the futures is the level we were looking at whether you use gray wolf or those type of numbers, i tend to round off the closest five if you will source far as the s&p 500 is concerned, we have hit that level. indications a little bit tired, very little volume. the trend and lack of volume today. cheryl: over at the cme.

talking about that resistance level, the s&p, what is on your radar? >> a good indicator over the years to give you a theoretical resistance point. for the first time on this whole run-up we are approaching the dow, s&p and not the nasdaq, has been the dow and the s&p. i'm also looking at what the vix is doing. over the past week has been having a pattern of higher highs and higher lows and climbing up to the 18 to 20 day moving average and i am watching how they are narrowing in. the fact that people are so complacent going into the meeting ended to february when historically february can offer you a pullback. i would have more concerns. cheryl: you have overbought, but a two-week high on the volatility index which tells me something isn't quite sit right

with many investors out there. do you think it is just a mass run-up? do you think it is economic? what do you think is the cause of this? >> at the end of the year the tax uncertainty left traders on the sideline. new money started chasing the market, we had a breakaway gap in the market, we haven't had a runaway, very few corrections, and now what is happening is it is falling off as they say i shouldn't be chasing it up, maybe there is enough reason to take me off the table and get myself ready for a pullback that i will buy one again. cheryl: some say the resistance level is 96, 97. i don't know. it seems to be pretty popular today. >> most certainly.

i am a gold trader if you want to talk about the range in gold out of the middle, no problem rea.cheryl: talk about the meda. >> we're in the middle of a very trading rich, 1525 to 1800. a lot of people are complaining about the lack of performance in gold lately but the truth of the matter is if you look at the normalized graph of gold, it goes from the lower left to the top rate in a straight line. i think if you're bullish you stay in, but 1800 you add to your long positions. cheryl: i appreciate all of you being here on the floor show, lots to watch. gentlemen, thank you. hitting a five-year high. ssome investors are concerned te market is overvalued. my next guest says the future is

bright, the rally will continue into the new year. jeremy siegel wharton school of business professor, tell us what will drive growth in this new year, and overall seeing a positive way into equities. even the retail investor has decided the bond market is and where they want to be an anymor, going into equities but can they still stay through the rest of the year in equities? >> most definitely. we see a lot of articles about the public moving back into equities. the public is still in bond funds, still in money markets, mutual funds. there are $3 trillion in money market funds earning a big goose egg. zero. they will be fed up with that after a while.

we will get headlines of new highs, they will say it is time for me to get out of the zero yielding money market, so there is still a wave on the sideline waiting to get into the market. cheryl: second best week of inflows into equities, but at the same time what we have seen, and this is history over the last three years a good strong first-half of the year and whether it is washington or the economy, something scares off those equity traders when we head into august and the second half of the year we lose those games. what makes 2013 in a different in your opinion? >> sell in may and go away. we have had this bullishness that tends to have deteriorated. lester wasn't quite as bad. i think a lot of that is chance.

we have the japanese tsunami earthquake that just happened in march, april, i don't think that is going to be part of a regular pattern. i think the second half of this year it's going to be better than the first half of this year. we have to absorb the payroll tax hike, there probably will be some sort of sequester that will come and slow it down the second half of this year 3% to 4% gdp growth turning into 2014. cheryl: that is very bullish indeed. another push over the last few years has been the fed and the boost we have gotten even the europeans are now on board from quantitative easing that has to end at some point. do you worry about the fed coming in and saying we are seeing a risk of inflation, we will have to start discussing a lack of interest rate hikes in the next couple of years? what happens then?

>> i do not believe the fed will be able to hold the summer of 2015, the interest rates at the current level but people said aren't you scared about that? i said no, that is good news for the stock market, they will only raise rates if the economy starts moving along quickly. so that will be great for earnings and wanting have to remember, the bull market does not end when the fed begins raising rates. they got anywhere from nine months to two years afterwards and we are not even to the point they're raising the rates, so even if they raise earlier than they say right now, i still don't believe that'll be a threat to investors today. cheryl: the most part it is a pretty even split of those who have read on the earnings side, beat on the revenue side but none of the numbers are fantastic by any means.

are we to suspect better quarterly reports throughout the year from these companies were still dealing frankly with a lot of extra regulation and other issues? >> yet. later this week we will get gdp. it will not be a good number. it is potentially going to be less than 1%. this is reporting on the fourth quarter, and actually i think over 50% have been beating the revenue estimates, maybe just slightly. so given how bad the fourth quarter actually was, i don't think these are terrible earnings at all. we can experience that acceleration throughout this year, seeking to the revenue and the earnings beat estimates. cheryl: i like that, actually. jeremy siegel, wharton school of business finance professor. thank you. >> thank you very much. cheryl: so much going on. including this, getting on the facebook bandwagon.

raymond james, the firm making some positive comments ahead of the earnings report. we will talk to the analyst who made that call. coming up next in a first on fox business interview. stay here. don't move. she knows you like no one else. and you wouldn't have it any other way. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right.

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cheryl: our power mover of the hour. men's apparel and accessories retailer says 2012 profits are expected to be about 20% lower than last year at the margins are getting squeezed due to higher marketing costs although i love the commercials, have to say. the stock is plenty t to a new 2 week low on this news. also customers did not buy as many sweaters, gloves or hats over the holidays even though prices got marked down. really has been unseasonably warm weather having a lot to do with it but this one week chart. nicole petallides on the floor of the new york stock exchange right now looking at a few things. sandra smith. starting with nicole. herbal life volatility, those

two words seem to go together. nicole: no doubt. basically campaigning against herballife. carl icahn coming out in the two billionaires have been head to head over this particular company. has been extremely volatile today as well. talk to attorney general office in lexington, kentucky, was going to be talking about a company that may have had a ponzi scheme, a pyramid scheme, an alleged pyramid scheme and there was speculation, something that could two and two together. that didn't mean that was the case. stocks sold off 8% off of the lows and year-to-date actually a winner.

cheryl: let's go over to the cme, sandra, you ar you're lookt the big selloff. what are you seeing? sandra: talking on the trade floor in chicago, natural gas a huge story. remember, most of the east coast uses natural gas to heat their homes. there are mild forecast heading into the month of february. that is leading to the big selloff, so natural gas at a two-week low in today's trading session, bank of america coming up with a forecast $3 natural gas. they are calling for an even bigger selloff than what we're talking about today. crude at $96.44 per barrel tod today, up another half of a percent. this is a bull market rally that is continuing. we have seen the longest weekly winning streak in crude oil

going back to 2009 and today was no different. it took a brief selloff that traders are just piling on to the long side of the crude oil market. back to you. cheryl: so interesting. thank you so much, sandra smith at the cme. investors are liking facebook today. shares are rising more than 2% after raymond james upgraded the social media giant to an outperform. $38 per share. joining me now from san francisco is the analyst who made that call. they first on fox business interview. $38 per share. is facebook back? you say it is. >> we think it is. the key negative thing for investors is they were monetizing. basically zero revenue.

that was really the inflection point. we think that can go to 25% in q4. the big negative conception was facebook couldn't monetize especially mobile. we are seeing that change recently, and newer ad formats. the facebook exchange getting good traction. cheryl: the monthly subscribers on a mobile side. with regard to facebook but the big question is the monetization of the mobile. that is a massive spread your talking about from the third quarter to the fourth quarter. when it comes to the ad revenue, how are we going to see that big of a jump in mobile advertising? where is that going to come from? >> 14%, but the end of the quarter about $3 million per day rate at $270 million project

roughly $350 million during q4. we look at quarter three, we think it'll be a reasonable list. cheryl: staying on the mobile team for just a moment. i think it is fascinating. in the top mobile app, facebook really is making that a huge jump when it comes to mobile subscribers. if we do get a solid number on wednesday, thursday lot of momentum, how far does the stock go above the price target? give me a guesstimate, if you will. >> we still think there is some upside to the numbers. we think of the numbers can continue to beat handily versus our estimates, can go above our estimate. cheryl: i had to try. let's talk about something else. yahoo is another big earnings story. i wonder they think facebook is going for this approach we sell

yahoo and aol go for over a decade, getting everyone into facebook doing everything on facebook. shopping, communications, all of that. is that for this company is trying to head for? and if so, can they do it? >> facebook is still largely experimental phase. on the other hand, they are partnering with a lot of areas. music, entertainment and shopping. partnering with a lot of different companies need to argue their health and potential competition by enabling companies like that to use facebook data. i would say it is taking the right strategy in terms of partnership and focusing on the platforms plus far. cheryl: if there was one negative were concerned about, what would it be?

>> potentia negative for the payment revenues, looking for $250 million in the payment revenue side. gaming business would continue to be weak so gaming has done well with desktops t but does nt translate well to mobile that will continue to be a headwind going forward. that is one potential risk on the gaming revenues. cheryl: i have to tell you, they talifyou talk to the bears, valn is still something they get criticized for. how do you respond to that? >> the stock originally $38 back in the summer months. they're putting a $38 target essentially the ipo price assuming a year out. that is in line with the internet companies, so when you have 2014 numbers on higher estimates now think the valuation is better. cheryl: it has been fascinating to watch that stock. the ipo until now.

thank you. >> thank you for having me. cheryl: now have 37 minutes to go. regional banks are we to make money in a tough environment. quarterly profits rose to the highest level in 10 years. bob jones talking about those drivers. don't miss it, our exclusive interview next. (announcer) scottrade knows our clients trade

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strong that would turn the corner in your opinion? >> i think credit quality for us is 17 basis points charge off the lowest since 1999. credit quality is very, very strong for all banks. cheryl: do you think the growth is coming from the small business customers, do you think the growth is coming for you from the recovery in houston? where is the economic strength of your region? >> history old fashion lending. a lot of clients once have gotten past washington, they say i have to grow my business, i will go out and borrow money and expand. it is just old-fashioned small business folks coming back to the banks and contributing to the growth of the economy. cheryl: we have been going for the different regional banks and earth, the margins have been an issue for many banks and i'm curious where you are with regards to that.

loan requests are lower. what does that mean for you? >> the challenge for the net interest margin is the rate environment. we have historically low short end of the yield curve and historically low long and making it very difficult to make margins. we have small compression core margins. moderate over time, but for the interest rates are the biggest challenge for us. cheryl: do you see the yield curve steepening this year, is that a possibility? >> we sure hope so, but we don't see that happening with the fed policy, little bit of increase in the yield curve, but that will moderate down and we think rates will stay where they are for the balance of the year unfortunately for banks. cheryl: we seem to see more acquisitions being made medium-sized banks going into a few couple hundred branches in

the region, said o will that be something you will see more of? >> absolutely. two weeks ago we announced the acquisition of 24 branches from bank of america and other indiana and southwestern michigan. as you think about the industry, go back to interest rates, you think about all the regulatory pressure. you think in the boardroom talking about the budget, it is an interesting discussion. we think all that leads to the mergers and acquisitions over the next 12 months. cheryl: out of curiosity since we seem to be turning the corner on loan demand overall, are you concerned about the quality of loans out there, the quality of borrowers, or is that a regulatory decision on your part? >> really was a management decision. we are increasing low reserves when you make more money and it is more of a prudent step on ours. an old-fashioned borrowing bank

and when you can increase your reserve, you do it and no indication of anything we have seen with the economy or the future. cheryl: i think that sounds great, actually. it is a great plan for your shareholders. i know that the stock was up more than 6% over the last year. i am curious what you think it means for the share price this year given the analysts are coming out a little bit more positive on you which i think is a ceo may be a little extra added pressure. >> it is added pressure, but it comes with the territory. i really believe we are moving back to old-fashioned core earnings as the driver of the stock price. historically the last couple of years it has been based on tangible book value is in my opinion is you will go back to see the winners in our equity market in stocks of those with the old-fashioned core earnings from bon loan growth and workinn your margin. an old-fashioned business.

cheryl: i know that the dividend increase was up by 11%. talk to me about the rest of the year because your shareholders would love to hear that you are considering more dividend increases, and if you say you are making money the old-fashioned way, which is great, but they like to get the payout as well. >> really the capital strategy focuses on three things. first and foremost is m&a. mergers and acquisitions as we have shown reall we provide the greatest value to our shareholders. should that market begin to get a little soft, we will look at the dividend, and as i said earlier, we will continue to look at the dividend as our earnings increase and we affirm 2 million shares buyback as well. we have a lot of components to reward the shareholders and understand every day that is who we work for. cheryl: solid banking, financial world. that is what we like. bancorp ceo and president, thank you very much.

>> thank you, cheryl. have a good day. cheryl: thank you. a lot happening after the bell. shares of yahoo of 29% over the past year. the analysts are counting on a turnaround. we will deliver what to watch for when those earnings come out. we will watch for that. ♪

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we replaced people with a machine.r, what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally. cheryl: here's your fox business market check. home sales fell in december from the previous month and if they did miss estimates when copies of the misfits from increased

housing activity. here are the names for you. look at whirlpool, val spahr, sherwin-williams, even a home depot, all of these names under pressure. again related to that report. hitting new highs before they headed downward. all of this is inventory issue across the country with regards to housing that could change on a dime and maybe change in february. we have a few movers and energy. culbertson up. nicole petallides is watching on the floor of the nyse. nicole: s., i am, two energy names both making news. let's start off with hess. did we make it enough for you? they are getting out of the refining business. focusing more on exploration and production in that move heads up 5.7% to expand in that area. i also wanted to bring you to hell a burton up 1.4% right now.

getting several analyst upgrades. jpmorgan has 45. the point of the story as these analysts have all got on board and like the idea that now halliburton talking about overseas in the growth business is doing so well and that is helping them to obviously expand. with that, to names that are soaring in the energy realm and thanks to my buddies who are pulling those up for us. cheryl: 20 minutes until close. yahoo! ceo steps up to the plate for her second earnings report after the bell today after taking over the company. shibani joshi with an earnings preview. was already asking questions of what you were predicting after the bell. what is the big headline? shibani: we probably will not see the big blockbuster numbers from the company or huge headline that will save the

company. this is a huge ship and it will take a long time to turn this around. it is up 30%. last quarter came in with a surprise beat. it is the external stuff that are helping the company along. so the core question remains how is this company going to get back to its roots. they say it is all about getting back to her roots, but this isn't the 90s, you don't want yahoo getting back to its roots. they had to get back with mobile and continuing to bolster the display ad business. search, this type i've got business, that is the specifics yahoo investors were looking for clarity. the big take away from this today looking for $0.28 per share in terms of earnings per share. the next four quarters are flat. this company is not projected to

go anywhere for a little while. cheryl: they have to hold off google, they have to hold off facebook, bing even at microsoft. shibani: the bottom line is the needle is not moving all that much. we're waiting to come up with action items, a big deal. microsoft didn't work out all that well for the company. trying to get into mobile. she has to move on from there. we want to know how, where and why. cheryl: and what sort of revenues are there. still going to be under the microscope from what you are saying. thank you very much. of course will be with david and i. four coverage expected after the market closes today. i will be there with david asm

david asman. shibani joshi will be with us as well. a lot of numbers crossing after the bell today. that is when our closing bell rings. it looks like the race for the debate. some companies are getting slammed this quarter because of the weaker yen and some reporting losses this week. do you own any of these stocks? who is hedging and who is not. currency grew up next in a fox business exclusive.

cheryl: here is your fox business market check.

the dow and s&p are hugging the flat line today. check out these stocks hitting new highs. waste management getting a boost upgrade, procter & gamble getting a slew of improvements today. this really is a story there. stocks and what he wants to buy them or not, these are the names to watch right now. do you think it is at work here? the yen continues to move while the bank of america will flood the market with money and use proceeds to make large-scale asset purchases. taking exception to that notion says japan is not trying to weaken the yen. so what can you do to protect your portfolio right now? chairman and ceo. from the outside looking in, the weaker yen seems to be a foregone conclusion here.

>> i actually agree. the prime minister has already said so and quite frankly put out a target at 100 against the yen, and we're moving toward it. the japanese in the 90s known to be very derivative and able to really move very younge yen y they wanted to. the biggest indicator was while i am not in the business of looking at if currency goes one way or the other, to really say look at what hit the market and they did all right between christmas and new year's. unfortunately that sets companies up in the united states to get impacted. you saw the automotive ceos prior to the inauguration with president obama going in and saying we have a problem, a big problem, we can't let the dollar yen go to 100. cheryl: the amount of american companies, are many of these countries in our portfolios that will be affected by this

weakening of the yen, the monetary move out of the japanese. give me some names of companies on our radar that will be concerned about. >> i came with a list of about nine pages of them, but i will throw a couple of them out there. i will not read them to you, promise. but start looking at companies. let me take a step back. that is pretty obvious, and some of the analysts saw that prior to happening and went to neutral from buy. apple is not noticed much to be doing it, but if you look at apple's revenues com, you saw se 60%, 61% of the revenues coming from abroad. when 20% of that revenue is now showing up 11% less, that is pretty significant you saw that

in there. looking at companies like impacted by it. and then you look at even the big names that everybody knows, but revenue companies talk in prior quarters about the yen. some of these have come out and said it doesn't weaken. harley-davidson, ralph arend is just a tipping point of what could be major issues with so many of those high companies depend on japanese revenue. >> you're absolutely correct. japan will be impacting them and yolook at the topline. there will be some impact.

it will not be big enough read it will not be helpful this quarter. cheryl: it is u.s. shoppers as well, but that is another segment. cheryl: the company that can weather the storm of the yen, who do you think is most prepared? >> you're talking about going to talk about yahoo, they got other things they're thinking about an occurrence may not be number one, but a solid company. yet in the same sector like google doing a great job at this thing. you look at the pharma as they have done a great job. technologies helping prepare and not having an impact the bottom line.

too many of these companies are still doing not what they need to be doing in this area. cheryl: were looking at those areas as well. look at how it can affect them. talk about currency volatility. if you still feel the same we did one month ago? >> i absolutely do. what currency is next? basically currency agnostic, i will be sitting here in three months and may be the yen. this quite frankly this list of companies will be likely a different list. a risk management sector companies not doing well, there are more and more companies doing well and hopefully that list will continue to shrink.

cheryl: currencies are fun, and it is. very interesting. the closing bell will ring, 10 minutes to go right now. investors and traders are watching closely. we are close, striking distance may be. taking out the final minutes of trading to find out if we can take it. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.

♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ cheryl: may not be today but certainly this is a week that market participants will watch for that key number above that 14,000 number. the close for the dow. look, we're 2% away from the all-time high, 14,164, but probably not going to make it today.

this could be, we're pretty close. we have only three minutes left to go in trading this. could be the 7th day in a row for the dow to upside. unfortunately we don't have that. could we make it 12 out of 13 sessions for the dow? we have a lost economic headwinds. we have a lot of data out this morning. this is a big week for data. we're watching technical levels for the dow, s&p and nasdaq. unfortunately you could have one bad report on housing one bad report, one message from the fed it can swing us the other way but at least we're very, very close right now. after the bell is couple moments away i get to stick hang out with one of my most favorite men in this building david asman. david: thank you. people are watching the interest rate on the 10-year. that did go to 2%. excuse me, not 10%. there was time it was up to 10%. that freaked